California New Regulations – Filing Required to Remove Gender from Auto Insurance Rates

As you may be aware, the California Department of Insurance (“CDI”) issued regulations prohibiting the use of gender in automobile insurance rates. If insurance companies use gender in determining the rates for personal auto insurance, they will be required to submit a filing removing gender from the company’s class plan by July 1, 2019. The regulations only mention a filing deadline and do not specify a required effective date.
Companies have the option to submit a simplified revenue neutral class plan filing, which is described in Section 2632.11(c)(1) of the regulations. Companies may also comply by submitting a full class plan filing that includes a sequential analysis supporting the proposed changes and compliance with the factor weights. However, this approach has some drawbacks, which may result in most companies choosing the simplified filing approach.
If you need assistance with the class plan filing or have any questions on the new regulations, please let us know. We have discussed the regulations with the Division Chief of the Rate Regulation Branch at the CDI and understand the advantages and disadvantages of the simplified and full class plan filing approaches.
Contact us with any questions on new regulations or if you need assistance with the class plan filing.
Contact:
Scott Knight
Managing Principal
Chief Sales Officer
310.889.0947
sknight@perrknight.com